Cablevision, the cable unit of media giant Televisa, will boost its broadband speed, following the lead of rival Telmex, owned by tycoon Carlos Slim, as competition in the telecom market heats up.
Cablevision will offer this year more than 10 Mb (megabits per second) across Mexico City and surrounding areas at very affordable prices, Televisa Executive Vice President Alfonso de Angoitia posted on the microblogging site Twitter over the weekend.
A Televisa source confirmed that the Twitter feed was genuine, but was not available for further details. Cablevision's website was still offering Internet at 2 Mb on Monday.
Last week, Slim announced that his fixed-line phone giant Telmex would boost broadband speed to 10 Mb later this year from a current range of 2 to 4 Mb.
The move was seen as a drive to bolster online services to counter lukewarm phone sales and rising competition in Mexico.
Telmex is still the leading Internet service provider in the country, but Televisa has made great strides by bundling television, online and phone services in one package at attractive prices.
Telmex was banned by the government from offering television services in Mexico due to competition concerns, giving an edge to smaller competitors.
Televisa has been very active on the cable and satellite market in recent years. Those businesses now generate about the same revenue as the company's core broadcast television unit.
Televisa owns three cable companies, including Cablevision, and teamed last year with Guadalajara-based Megacable to offer triple-play packages under the YOO brand banner.
Televisa has also expressed interest in bidding for blocks of frequency in an upcoming government spectrum auction to launch its own wireless phone network.
Local media reports have said it could team with other players, including France's Vivendi and NII Holdings Inc's Mexican unit, to strengthen its phone venture. Televisa declined to comment on the reports.
Televisa shares slipped 0.53 percent to 50.91 pesos in morning trade.
(Reporting by Cyntia Barrera Diaz; editing by John Wallace)